Vermont Statutes Title 26 Sec. 1274
Terms Used In Vermont Statutes Title 26 Sec. 1274
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Beneficiary: A person who is entitled to receive the benefits or proceeds of a will, trust, insurance policy, retirement plan, annuity, or other contract. Source: OCC
- Contract: A legal written agreement that becomes binding when signed.
- Director: means the Director of the Office of Professional Regulation. See
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- following: when used by way of reference to a section of the law shall mean the next preceding or following section. See
- Funeral director: means a licensed person who is the owner, co-owner, employee, or manager of a licensed funeral establishment and who, for compensation, engages in the practice of funeral service. See
- Person: shall include any natural person, corporation, municipality, the State of Vermont or any department, agency, or subdivision of the State, and any partnership, unincorporated association, or other legal entity. See
§ 1274. Transfer of contracts and assets
(a) A buyer of prepaid funeral arrangements may transfer a revocable or irrevocable contract and assets to another funeral director under similar arrangements, in Vermont or outside. The funeral director who originated the contract may charge the buyer a transfer fee of no more than five percent of the principal amount of the assets.
(b) A funeral director shall transfer a contract and assets to another funeral director if any of the following events occur:
(1) The funeral director’s business is sold.
(2) The funeral director becomes insolvent or bankrupt.
(3) The funeral director ceases to do business. Before transferring a contract and assets under this subsection, the funeral director shall notify the buyer of the director’s intent to make such a transfer, and the buyer may choose the funeral director to whom the contract and assets will be transferred.
(c) If a buyer of a prepaid funeral arrangement defaults in making payments required under the terms of the contract, or if the buyer or the person responsible for making funeral arrangements for the deceased beneficiary fails to have the funeral director provide services, the funeral director may retain up to five percent of the amount in the escrow account at the time of default. The escrow agent shall pay the amount retained to the funeral director and the balance to the buyer when the funeral director gives written notice of default.
(d) The assets held in an escrow account, including any earnings on the assets, shall not be available to the funeral director and shall be exempt from levy or execution for the debts of the funeral director, except as otherwise provided in this subchapter. (Added 1991, No. 219 (Adj. Sess.), § 5, eff. Jan. 1, 1993.)